|Date Last Updated||5/9/2013|
|Incentive Type||Loan; Grant|
|Incentive Administrator/Contact Office||USDA - Rural Development|
|Incentive Initiation Date||5/13/2002|
|Incentive Expiration Date||7/15/2013|
|Incentive Size and Funding Source||The Renewable Energy for America Program's (REAP) Renewable Energy System and Energy Efficiency Improvement Guaranteed Loan and Grant Program provides financial assistance to agriculture producers and rural small business for the specific purpose of purchasing, installing and constructing renewable energy systems. The deadline for grant applications under the most recent solicitation is May 31, 2013; The deadline to apply for loan guarantees under the most recent solicitation is July 15, 2013.|
The rates and terms of these loans are negotiated between the lenders and the borrowers. The maximum amount of a REAP Guaranteed Loan is $25 million per loan request. The minimum loan amount is $5,000. Up to 75% of total eligible project costs can be covered through the REAP Guaranteed Loan Program. The following guarantee limits apply:
The following grant amounts apply:
- 85% for loans of $600,000 or less.
- 80% for loans greater than $600,000 up to $5 million.
- 70% for loans greater than $5 million up to $10 million.
- 60% for loans greater than $10 million up to $25 million.
The following limits apply to combination guaranteed loan and grant requests:
- The minimum Renewable Energy System Grant request is $2,500 up to a maximum of 25% of eligible project costs or $500,000, whichever is less.
- The minimum Energy Efficiency Improvement Grant request is $1,500 up to a maximum of 25% of eligible project costs or $250,000, whichever is less.
- The combined request cannot exceed 75% of total eligible project cost.
- The above guarantee limits apply.
- The minimum combined funding request allowed is $5,000 with the grant portion of the funding request being at least $1,500.
- The same grant and loan maximums are applicable.
|Eligible Recipient||Guaranteed loan and grant eligibility is limited to rural, small businesses and agricultural producers. Agricultural producers must earn 50% or greater of their gross income from their agricultural operations. An entity is considered a small business in accordance with Small Business Administration's Small Business Size Standards.|
Most lenders are eligible, including national and state-chartered banks, Farm Credit System banks, and savings and loan associations. Other lenders may be eligible if approved by USDA.
|Eligible Fuel||Does Not Specify|
|Eligible Project Size (MW)||Does Not Specify|
|Minimum Efficiency Required (%)||Does Not Specify|
|Other Selected Eligibility Criteria||For both loan guarantees and grants, project must meet the following conditions: |
Energy Efficiency Improvement Projects include any energy savings measures to businesses or agricultural operations including but not limited to replacement of inefficient equipment, retrofitting, insulation or any recommended improvement identified in the energy assessment or energy audit.
- Must go towards the purchase of a renewable energy system or to energy efficiency improvements.
- Technology is pre-commercial or commercially available, and replicable.
- Must have technical merit, as specified in Rural Development Regulation 4280 subpart B.
- Small business must be in a rural area, but an agriculture producer may be located in a rural or non-rural area.
- Applicant must be the owner of the project and control the revenues, expenses, operations and maintenance of the project.
- Sites must be controlled by the agricultural producer or small business for the financing term of any associated Federal loans or loan guarantees.
- Must have satisfactory sources of revenue for the life of the project that will be used for the operation, management, maintenance and debt service of the project.
Eligible Renewable Energy Projects:
- Biomass, bio-energy: produces fuel (e.g., biodiesel, ethanol), thermal energy or electric power from a biomass source (crops, trees, wood, plants, their residues and fats, oils, greases and other biodegradable waste material).
- Biomass, anaerobic digesters: produces thermal energy or electric power via anaerobic digestion using animal waste & other organic substrates.
- Geothermal, electric generation: electric power from the thermal potential of a geothermal source.
- Geothermal, direct use: produces thermal energy directly from a geothermal source.
- Hydrogen: renewable energy systems using hydrogen as an energy transport medium.
- Solar, small: electric projects with rated power <10 kW; thermal projects with rated storage <240 gallons.
- Solar, large: electric projects with rated power > 10 kW; thermal projects with rated storage >240 gallons.
- Wind, small: systems with a <100 kW-rated wind turbine & with a generator hub height of <120 feet.
- Wind, large: systems with a >100 kW-rated wind turbine.
- Hydroelectric: electric power from hydro projects of 30 MW or less.
|Other Incentive Details||Eligible project costs for Renewable Energy Systems and Energy Efficiency Improvements are: |
- Post-application purchase and installation of equipment (new, refurbished or remanufactured), except agricultural tillage equipment, used equipment and vehicles.
- Post-application construction or improvements, except residential.
- Energy audits or assessments.
- Permit and license fees.
- Professional service fees, except for application preparation.
- Feasibility studies and Technical Reports.
- Business plans and retrofitting.
- Construction of a new energy efficient facility only when: the facility is used for the same purpose; is approximately the same size; and, based on the energy audit, will provide more energy savings than improving an existing facility. Only costs identified in the energy audit for energy efficiency improvements are allowed. New equipment as long as it is of similar size to the equipment being replaced.
- Working capital (applicable for guaranteed loan only).
- Land acquisition (applicable for guaranteed loan only).